Positive Parenting: What You Need to Tell Your Kids About Money NOW!
Today our children often grow into adulthood without any formal or informal training in money management. At the same time the WANTS of children and teens today are exhaustive, negatively impacting the budgets of most families. This inability to delay gratification and the unwillingness to learn to earn money for the things they want, is not the best training for the future. Increasing rates of significant debt on the part of young adults today is the result. What can parents do?
The following is an excerpt from a fact sheet series about kids and money, with a link to the full series below.
Money Management Sense
Children are like sponges. From the time they are babies, they absorb what they see and hear around them. They get their ideas about money from you as parents/caregivers. So, it is logical that home is the best place for teaching children about money.
Young children can't understand everything about family finances, but they can understand some things. Help them grow into good money management skills and values by letting them share in family discussions.
Every family is different. You have to decide for yourself whether to tell your children exactly how much money you make in dollars and cents. You may only want to talk about how much money you earn in a general way. But if children know how the family stands financially, they can do a better job of handling their own money.
The more children understand about family income, expenses and goals, the more willing they may be to cooperate with the family spending plan. For example, if they know that family income is irregular or that the family has had a financial setback, they can understand why they can't have the expensive jeans or shoes they want.
Teaching children the value of money without emphasizing it too much is a challenge to parents/caregivers. Answer the questions that follow to find out how well you are teaching your children to manage money.
HOW ARE YOU DOING? RATE YOURSELF
- Do my children have some money to manage without my interfering?
- Have I helped each of my children set up a spending plan?
- Have I explained why and how people save money for future goals?
- Do I avoid using money as a reward or punishment?
- Do my children have regular household chores to do?
- Do I help my children find ways to earn extra money, suitable to their age and ability?
- Do I set a good example by being truthful about money matters?
- Do I give my children more financial responsibilities as they get older in order to help them gain experience in handling money?
- Do my children participate in family money management?
- Am I a good money manager, giving my children a good example to follow?
- Have I shared my own mistakes with money so that my children can learn from them?
Yes answers show that you are probably helping your children gain money management skills.
No answers suggest that you may need to help them more. Either way, this home study series will offer ideas for new ways to make both you and your children better money managers.
SOURCE: Money Sense for Your Children, Lesson 1, Money Management Sense, University of Nevada Cooperative Extension
Links to Resources Online
Download this excellent fact sheet series Money Sense for Your Children
UNH Cooperative Extension - Youth and Money
University of Minnesota Cooperative Extension- Youth and Money
For more information or questions, please contact: Karyn M. Blass, Extension Educator, Family and Consumer Resources, karyn.blass@unh.edu, 679-5616.
Positive Parenting is a regular feature on WMUR-TV which airs during the 12:00 noon news every third Thursday. Extension professionals are interviewed during a three-minute segment for new ideas and fresh perspectives on the joys and challenges of raising children. Timely topics and tips offer parents and others research-based information that can assist them in their parenting role. Click here to find additional information on topics discussed during the Positive Parenting WMUR-TV interview segments.
